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San Diego home values dropped 0.7% from November to December, according to Case-Shiller/Standard & Poor's data released this morning (Feb. 28). That was less than the 1.1% drop of the top 20 metro areas.

For the year, however, San Diego's decline of 5.4% was larger than the 4.0% decline of the top 20 areas. San Diego home values are now down 39.9% -- rounded off, 40% -- from their peak in late 2005.

Nationally, the new data are disappointing. "While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended," said S&P's David Blitzer.

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Comments

brucelee5 Feb. 28, 2012 @ 9:13 a.m.

5 years before home prices began to guarantee a 2-5% return on investment. 5 MORE FOR THIOSE THAT WENT BANKRUPT!

Based on leveled research from 1950 on thru today, and on demand and income factors with 35-50% of income being the highest ever used for statistical purposes.

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Don Bauder Feb. 28, 2012 @ 9:34 a.m.

I don't think anyone would argue that housing was not in a bubble prior to the collapse. San Diego's peak was in November of 2005, according to Case Shiller numbers (not according to some others' numbers), while the nation peaked a bit later in 2006, according to most calculations. Even after a 40% drop, San Diego still has among the highest home prices in the U.S. In the West, the bubble most ignominiously burst in Las Vegas and Phoenix. Best, Don Bauder

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SurfPuppy619 Feb. 28, 2012 @ 11:45 a.m.

I said in 2008 we were going to see a 3-5 year depressed RE market-at least for resdiential. Rememebr, the 1990-94 downturn only hit commercial properties and only lasted 2 years.

Boy was I was way off base. It is now going to last 5-10 years IMO.

We STILL, 5 years after this depression started, have entire cities where 30% or more of the homes are underwater.

We won't be getting out of this anytime soon.

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Don Bauder Feb. 28, 2012 @ 2:21 p.m.

I think the residential slump will last much longer. There is a huge backlog of homes that will be foreclosed upon and dumped on the market. Plus despite low interest rates, mortgages are difficult to get for the wee folk. (Of course, private equity groups, hedge funds and the like, whose activities actually worsen the economy, can get loans.) Best, Don Bauder

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SurfPuppy619 Feb. 28, 2012 @ 6:39 p.m.

Could take another 5 years IMO, do you fell it could go past 2017??

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Twister Feb. 28, 2012 @ 1:47 p.m.

There must be a pocket in the region of about a million bucks, plus or minus, that did not suffer a great a decline as other parts of the price spectrum. Any data to back that up or refute it?

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Don Bauder Feb. 28, 2012 @ 2:23 p.m.

The Union-Tribune used to print home prices by neighborhood. I haven't looked to see whether it still does so. Best, Don Bauder

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SurfPuppy619 Feb. 28, 2012 @ 6:40 p.m.

ALL areas have takem major hits, no packet has been ledt untouched. Has the decline been as big?? I would bet close.

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Don Bauder March 1, 2012 @ 8:58 a.m.

When there is a 40% hit, it's safe to assume that most if not all price levels have suffered some deflation. No doubt, however, some are hit worse than others. Best, Don Bauder

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Shadow Feb. 29, 2012 @ 4:52 p.m.

Higher priced ($700K+) SD homes are also affected. We were recently turned down for a re-fi because the house appraised at 230K less than we paid. Appraiser said this was more about comps in the area than the actual home value but it's still depressing.

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SurfPuppy619 Feb. 29, 2012 @ 10:40 p.m.

Wow, that must be depressing.

The fact is we are so far out from a real recovery I have serious questions about what many people are going to do if the economy keeps tanking.

Scary times. For everyone. Including the upper 20% in the million dollar homes.

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Don Bauder March 1, 2012 @ 9 a.m.

Yeah, but the upper 20% has a cushion the others don't have. Best, Don Bauder

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Don Bauder March 1, 2012 @ 8:59 a.m.

Those comps can be very misleading, particularly if there are few of them. Best, Don Bauder

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Twister March 1, 2012 @ 10:16 p.m.

All I know is that when we look around our old neighborhood, we don't see that much decline. I suspect that the $700 ones.

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valueinvestingisdead March 13, 2012 @ 7:52 a.m.

Solana Beach has held up for some reason. Small cottages are still over $1 million near the Ocean.

I still believe Encinitas/Carlsbad will be the next place to crumble. There are multitudes of ALT-A loans there that are going to crush people. Look for a major plunge in those locales.

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